IQMS Blog for Manufacturing ERP Expertise

Mexico is currently being hit by a one-two economic punch: a weak peso and historically low oil prices. Since January of 2015, the value of the Mexican peso against the United States dollar has dropped 25 percent. A weaker currency makes imports more expensive, but it is typically offset by the increased value of dollarized exports.

New York Manufacturing Activity Contracts at Steepest Rate Since 2009 The composite index of general business conditions from the New York Federal Reserve Bank declined sharply in August (from 3.9 in July to -14.9 in August), the lowest level since the Great Recession. From a more long-term standpoint, the Empire State Manufacturing Survey’s headline figure has bounced around a lot over the past five months, suggesting softness in the current economic environment due to reduced demand and shipments, but a cautiously upbeat outlook moving forward. To learn more, visit here.

The creation of the modern ERP system began in the 1960s. Most manufacturing systems were developed to assist accounting departments, with general ledger and accounts payable/ receivable functionality at the core. Over time, the systems evolved to include MRP and inventory control because understanding where and how you spent your money allowed for better cost control. Eventually, more shop functionality was added until the ERP software evolved into the version we know today, with less emphasis on the original financial foundation.

15,000 Manufacturing Workers Added in July At the fastest pace since January, manufacturers added 15,000 net new workers in July, according to the Bureau of Labor Statistics. This encouraging figure is closer to the monthly average of last year, when manufacturing activity was more robust. Overall, total manufacturing employment rose to 12.35 million and average weekly earnings increased from $1,018.65 in June to $1,025.23 in July. The Federal Reserve will likely look at this report favorably, and while it may acknowledge that hiring strength needs to be stronger (especially in the manufacturing sector), they likely could begin to raise short-term interest rates in September. To learn more, visit here.

Recently, IQMS had the opportunity to join a gathering of automotive industry leaders and engineers for a special vehicle unveiling. At the EDAG office in Troy, Michigan, EDAG global CEO, Jörg Ohlsen, presented his company’s newest lightweight concept vehicle: The Light Cocoon.

When it comes to the shop floor, medical and consumer products manufacturer, Tessy Plastics LLC, is continuously looking for ways to improve efficiency and accuracy through automation. By utilizing the features in its manufacturing-specific ERP software from IQMS, Tessy has created a paperless shop floor, installed electronic podiums at each work center to track production data in real time and implemented touch screen information centers across its plant for increased communication.

U.S. Manufacturing Expands at Slower Pace than Expected in July The Institute for Supply Management’s manufacturing purchasing managers index (PMI) fell from 53.5 in June to 52.7 in July. While a reading above 50 indicates that the manufacturing industry is generally expanding, this drop over the past month indicates tepid growth at best in the sector. The employment index also decreased in July, from 55.5 in June to 52.7. On a positive note, the new orders index increased to 56.5 last month, up slightly from 56 in June. To learn more, visit here.